Now is a great time to invest in a rental: Low home prices and low interest rates make this a great time to become an investor.
"We haven't seen home prices this low in so many years, coupled with the rates being so low," says Steve Albin, an agent with Realty Investors LLC / Justlistedknoxville.com in Knoxville. Tennessee. "When the money is cheap to borrow and the houses are cheap to buy, it's absolutely the best time to invest."
Partner with experience. First-time investors should find a real-estate agent experienced in investment property deals who can help you locate promising properties. "Look for relational brokers who expect to do business with you again and therefore are going to be much more careful with what they recommend," Tina Mounger says an agent with Realty Investors LLC / Justlistedknoxville.com.
Whatever you do, understand that buying investment property is an entirely different experience than buying your primary residence. "When you go to buy your own home, you usually have emotions in it," Tina Mounger says. "When you go to buy an investment property, you need to put all that aside and ask, 'What makes sense?'"